Platform BPO and its Impact on Outsourcing

October, 2012

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Platform BPO is also known as Business Platform as a Service (BPaaS) or Business Process as a Utility (BPU) and is essentially an end-to-end process management service hosted on cloud. Platform BPO provides an alternative to legacy outsourcing that has been coming under pressure in the current volatile economic scenario due to its inflexible contracting structure, lack of innovation and want of business value addition. Platform BPO can be viewed as a union of Software as a Service and Infrastructure as a Services for an entire Business Process.
Platform BPO with its low upfront capital requirements are very beneficial to Small and Medium size businesses that are cash starved. Moreover, the large organizations are also demanding additional benefits to cost arbitrages from traditional outsourcing. For Service providers, moving to Platform BPO creates a new non-linear revenue stream from the SME buyers while climbing higher in the client value chain.

This white paper aims to throw light on Platform BPO, its merits, risks and impact on outsourcing. At a high level, it will help buyer organizations to understand the relevance of Platform BPO to their organizations and judge their impact.